THIRD PARTY RISK.

Star (Christchurch), Volume XLIV, Issue 257, 29 October 1931, Page 6

THIRD PARTY RISK.

Judge’s Decision on an Important Point. FULL DAMAGE COVERED. Per Press Association. DUNEDIN, October 29. Mr Justice Kennedy has given judgment on an unusual point relating to third party risk for motorists. The matter came before the Court as an application for an order to determine whether upon the construction of the insurance policy the defendant was bound to indemnify the plaintiff. Damage was done by a motor-car to a motor omnibus, and the question was whether the indemnity was in respect to the sum necessarily expended to make good the physical damage at the moment of injury or include the damage resulting to the owner of the motor omnibus through being deprived of the use of the omnibus while repairs were being effected. His Honor said: “I think that the indemnity does cover what is termed * third party property risk,’ in accordance with the heading used in the policy and that the whole and not merely part of that risk is covered. It follows that upon the proper interpretation of the policy plaintiff is indemnified against liability at law for the claims mentioned.”